Kenya Raises Concerns Over Tanzania’s New Trade Restrictions, Calls for EAC Compliance
Nairobi, July 30, 2025 — The Kenyan government has expressed deep concern over recent trade and tax measures imposed by Tanzania, warning that they threaten regional economic integration and violate the East African Community (EAC) Common Market Protocol.
In a press release issued by the Ministry of Investments, Trade and Industry (MITI), Cabinet Secretary Hon. Lee Kinyanjui highlighted Tanzania’s introduction of new excise duties and a business licensing order that discriminates against non-citizens, including Kenyan traders.
Key Concerns
- Discriminatory Tax Measures: Tanzania’s Finance Act 2025 and amended Excise Act impose a 10% excise duty and a 15% Industrial Development Levy on goods, which Kenya argues contravene EAC trade agreements.
- Business Licensing Order: A new gazette order prohibits non-Tanzanian citizens from operating in 15 sectors, including micro and small industries, with penalties for violations. Current license holders are exempt, but the move has raised fears of stifling cross-border investments.
EAC Trade at Risk
Tanzania is Kenya’s second-largest trading partner in the EAC, with bilateral trade valued at Ksh. 63 billion in 2024. Kenya fears these measures could undermine the region’s free trade principles, particularly Article 13 of the EAC Common Market Protocol, which guarantees equal treatment for businesses across member states.
Diplomatic Engagements Underway
Kenya has initiated multilateral and bilateral discussions to resolve the dispute:
- The EAC Secretariat is compiling a list of non-compliant taxes and levies by member states, due by August 30, 2025.
- Technical meetings, including a session on tobacco trade (August 4–5) and a Joint Trade Committee review (August 11–12), are scheduled in Arusha.
- A compliance-focused EAC Sectoral Council meeting will be held by September 30, 2025.
Commitment to Regional Unity
CS Kinyanjui reaffirmed Kenya’s commitment to EAC principles, stating, “In the spirit of ‘one people, one destiny,’ we urge Tanzania to align its policies with our shared goals of non-discrimination and free movement of goods and services.”
The outcome of these talks will be closely watched, as tensions over trade barriers could impact the broader stability of the EAC’s Customs Union.
— Reporting by MITI Communications
